Dividend Yield Trend PDF

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A research on dividend yield trend...

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Running Head: DIVIDEND YIELD TREND

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Dividend Yield Trend Student’s Name Institution

DIVIDEND YIELD TREND Dividend investors focus on achieving an attractive yield. Most companies in the S&P 500 have their returns featuring between 1 percent and 2 percent (Wasylyszyn, 2014). The current status shows that under 40 companies in the S&P 500 yield more than 4 percent. Despite the existence of many companies in the S&P 500, this paper only focuses on Apple (AAPL) Company. The critical topics of review are the rate of dividend yield level and the applicability of the dividend discounting model in Apple Company. Lastly, the paper highlights other stock determinants for Apple Company. Initially, for the past 13 years, the highest dividend payout ratio was 0.29, the minimum rate was 0.06 and the median ratio estimated was 0.26 ("Apple Dividend Yield % | AAPL GuruFocus.com," 2019). However, the current state of dividend yield is increasing at a ratio of 1.08 percent. Notably, 2019 has marked a high dividend rate (Caplinger, 2019). Hence, it is evident that the current state of Apple’s dividends rate is increasing. Dividend change is a significant factor that affects Apple’s dividend discounting model. The dividend discounting model considers the current state of annual dividend payments, the projected dividend growth and the targeted yearly return on investment. As of Apple Company, the considered factors are estimated at $3.08 per share, 8 percent and 10 percent respectively. Accordingly, with an estimation of positive values, Apple’s stock value is assumed to be fair at $166 per share ("Apple Dividend Stock Analysis | Big Dividend Growth | Low Dividend Yield," 2019). Moreover, the yield direction is not the only stock property determinant. Apple’s ability to delivering quality products through friendly user interfaces is a crucial driver for apple’s stocks. The excellent performance is evident through iPhone sales, the launching of new

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DIVIDEND YIELD TREND products, and market sentiment. Besides, apple’s bottom line increases incredibility in success through brand recognition and popular products (Zucchi, 2018).

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DIVIDEND YIELD TREND

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Apple Dividend Stock Analysis | Big Dividend Growth | Low Dividend Yield. (2019). Retrieved 25 December 2019, from https://dividendsdiversify.com/apple-dividend/ Apple Dividend Yield % | AAPL - GuruFocus.com. (2019). Retrieved 25 December 2019, from https://www.gurufocus.com/term/yield/NAS:AAPL/Dividend-Yield-/Apple Caplinger, D. (2019). Will Apple Raise Its Dividend in 2020? | The Motley Fool. Retrieved 25 December 2019, from https://www.fool.com/investing/2019/11/15/will-apple-raiseits-dividend-in-2020.aspx Wasylyszyn, D. (2014). Dividend.com. Retrieved 25 December 2019, from https://www.dividend.com/how-to-invest/the-sp-500-a-dividend-overview/ Zucchi, K. (2018). What Moves Apple's Stock Price?. Retrieved 25 December 2019, from https://www.investopedia.com/stock-analysis/061115/what-moves-apples-stock-price-aapl.aspx...